Eagle Rock Energy Partners LP and Apache Corp. have struck a new fee-based gas gathering, processing and purchasing agreement in support of Apache's drilling in the Texas Panhandle. Apache has dedicated all existing and future wells drilled within an area encompassing more than 106,000 gross acres in Hemphill, Lipscomb, Ochiltree, Roberts, Hansford and Sherman counties under market-based terms. The agreement supersedes and expands on previous agreements between Eagle Rock and Apache. The dedicated acreage covers the Granite Wash, Hogshooter, Tonkawa, Marmaton and Cleveland plays in the Anadarko Basin. The associated Apache production will be gathered and processed at one or more of the partnership's cryogenic processing plants in the Panhandle. Eagle Rock's Panhandle assets consist of 6,500 miles of gathering pipeline and more than 480 MMcf/d of processing capacity, with an additional 60 MMcf/d of processing capacity expected to come online in the second quarter.
Pembina Pipeline Corp. is conducting a non-binding open season through April 30 for potential expansion capacity on its crude oil, condensate and natural gas liquids (NGL) pipelines in northwest Alberta. Parties will have the opportunity to submit non-binding nominations for all or any combination of the commodities transported by Pembina (including high-sulphur crude, sweet crude, condensate, propane plus and ethane plus) at existing and potential future receipt points on the Peace, Northern and Swan Hills pipeline systems. "Increased production from the Duvernay, Cretaceous, Montney, Deep Basin and Swan Hills areas has resulted in significant demand for additional transportation services in Alberta" said Pembina CEO Mick Dilger. Pembina recently announced a $1 billion expansion of its NGL system (see related story this issue). For information, visit www.pembina.com.